An Interview with Eric Klein
Eric Klein, partner at Lemnos Labs, discusses the state of hardware venture capital, explaining why VCs have shifted away from consumer electronics toward industrial and applied robotics due to lower risk and higher margins. He highlights specific investments like Dishcraft, which automates restaurant dishwashing, and Elroy Air, which develops autonomous air cargo delivery, illustrating how falling component costs enable new markets. Klein emphasizes that successful hardware founders must combine technical expertise with strong storytelling and business acumen, noting that investors prioritize the team's ability to navigate the 'fog of war' over perfect prototypes.